1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Burka [1]
3 years ago
9

Which of the following statements is CORRECT? a. During a period when a company is undergoing a change such as increasing its us

e of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future. b. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0. c. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm. d. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities. e. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically.
Business
1 answer:
hram777 [196]3 years ago
7 0

Answer:A. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.

Explanation: Leverage is a term used in Financial investment to mean the use of various borrowing options by an organisation in order to improve its potential to make profit or its potential to be Competitive.

Risky projects are projects known to high a high chances of loss,this type of projects can lead to severe consequence for business Organisations.

the beta of an investment is a measure of the risk which is caused by the exposure of an investment to general market changes as opposed to internal factors that can have severe negative impact on an investment.

You might be interested in
Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 45 million cases of cola were sold ever
Genrish500 [490]

Answer:

Tax on a case of cola is $4 per case.

The burden that falls on consumers is $1 per case.

The burden that falls on producers is $3 per case

False. This is due to the fact that producers already carry a greater share of the tax burden.

Explanation:

Tax on a case of cola = Amount that consumers pay after the tax has been charged - Amount producers receive = $7 - $3 = $4 per case

Burden on consumers = Amount consumers pay after the tax has been levied - Amount consumers pay before tax was levied = $7 - $5 = $1 per case

Burden on producers = Tax on a case of cola - Burden on consumers = $4 - $1 = $3 per case

False. This is due to the fact that producers already carry a greater share of the tax burden.

4 0
2 years ago
Sally’s parents deposited $15,000 into a college savings account on her third birthday. The account had an interest rate of 9.6%
kozerog [31]

Answer:

The correct option is yes,the $15,000 will double each 7.5 years.In 15 years ,it will double twice.

Explanation:

The 72 rule stipulates that the number of years it would take an investment to achieve accumulate a certain amount- future value, can be computed by dividing 72 by the interest rate earns by the investment

N, the number of years=72/9.6

                                      =7.5 years

Invariably,in 7.5 years' when Sally would have been 10.5 years(3 years now+7.5 years) the investment would have doubled.

By another 7.5 years when Sally would have been 18 years(10.5 years +7.5 years), the investment would have doubled twice.

The 72 rule is fast-track approach to calculating the duration of an investment.

7 0
2 years ago
Read 2 more answers
Stewart inc.'s latest eps was $3.50, its book value per share was $22.75, it had 215,000 shares outstanding, and its debt-to-ass
Vikki [24]
<span>80,000 people who traveled to the West in search of riches</span>
4 0
2 years ago
What is the difference between apparatus and materials?
Aleks04 [339]
Materials are any single item utilized when conducting scientific experiments. Apparatus is a collective group of items combined to perform experimental projects that do not have consumption. An example of a material would be water. Examples of apparatus would be thermometers or other instruments.
<span />
7 0
3 years ago
While it may not be possible to make the receiver happy when you deliver bad news, you can reduce bad feelings by structuring yo
OlgaM077 [116]

Answer:

  • Care and concerned use A) Unnderstanding
  • open to bad news C) When it may benefit them or somebody else
  • Candidate interview... C) close with good wishes  D) Buffer the opening
  • Forgot to turn in report .... B) Accept responsibility of the mistake D) Apologize with sincerity
  • Bakery customer ... A) Defensive remark B) freebie or promotional discount C) a statement of company policy regarding refund
  • It provides no explanantion. A) It makes a promise that might br difficult to keep

Explanation:

  • To make somebody feel cared you must show understanding of his/her problems.
  • People are open to bad news if you present them with facts and tell about the best possible outcome for everyone
  • Reject a candidat with good wishes and providing feedback on his/her application.
  • When you make a mistake accept responsibility and apologize with sincerity. You must try to suggest an alternative to make up for your mistake
  • Defend your product with a remark that would gain understanding of the customer. Adhere to the company policy and offer something to make the customer happy
  • The letter doesn't mention any reason for not being able to make exceptions. A promise is made that might be difficult to keep as different people may have different expectations for "bigger bonus checks"
7 0
3 years ago
Other questions:
  • A company sells digital music players and is introducing its latest player to the market. The company knows it can’t compete hea
    5·1 answer
  • How is the spending multiplier effect related to demand-side economics?
    12·1 answer
  • ____________________________ will often cause monetary policy to be considered counterproductive because it makes it hard for th
    12·1 answer
  • Cody Parker is a senior manager who is evaluating four possible projects (A, B, C, and D). Cody can fund any project in part or
    11·1 answer
  • A firm utilizes a strategy of capital rationing, which is currently $375,000 and is considering the following two projects: Proj
    6·1 answer
  • DAR Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P
    8·1 answer
  • Roose, Inc. reported revenue of $92 million and incurred total expenses of $84 million. The total expenses included cost of good
    15·1 answer
  • When the economy is in a recession, expansionary fiscal policy can be used to stimulate and encourage economic growth. Which of
    15·1 answer
  • A steam generation system at a biomassfueled power plant uses an electrostatic precipitator (ESP) to clean its gaseous effluents
    7·1 answer
  • The saving component of financial planning focuses on long-term security and includes:
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!